Reference no: EM132230803
1. Rod and Todd have joint and several liability as sureties on a loan made to Rod's business by First Bank. Under this agreement, Todd is a _________________.
A) General guarantor
B) Special guarantor
C) Co-surety
D) Sub-surety
2. A surety is liable to the creditor as soon as the principal ________.
A) Enters into the contract.
B) Makes an initial payment.
C) Defaults.
D) Files for bankruptcy.
3. State law requires that state chartered banks post bonds to protect the banks from losses caused by embezzlement by bank employees. The bonds posted by banks are __________bonds.
A) Fidelity
B) Performance
C) Bank
D) Fiduciary
4. If a judgment for dollar damages is not paid, the judgment creditor may apply for a ______.
A) Default judgment.
B) Writ of Execution.
C) Writ of Habeas Corpus.
D) Writ of first refusal.
5. In a _______, a creditor must have made reasonable but unsuccessful attempts to collect from the principal before the guarantor can be held liable.
A) Absolute guaranty.
B) Unconditional guaranty.
C) Conditional guaranty.
D) Satisfaction guaranty.
6. Megan agreed to act as a surety on a personal loan First Bank made to Arthur. When Arthur defaulted on the loan, Megan paid off the loan obligation. Megan now has the right of ________against Arthur.
A) Reimbursement
B)I ndemnification"
C) Contribution
D) Subrogation